If you are buying South Lake Tahoe real estate this year, you likely have already started looking at homes for sale in South Lake Tahoe. You may have seen some awesome homes, then had complete sticker shock after looking at the price. This can be frustrating at first, but before you label South Lake Tahoe homes for sale as being “overpriced”, you should know the factors behind a listing price. Below are the key things South Lake Tahoe realtors take into account before they help their sellers come up with a sale price.
- The Market conditions.
As tough as this pill is to swallow, homes for sale in South Lake Tahoe are only worth what people are willing to pay for them. In a seller’s market, there is less inventory which means list prices are usually higher. High demand & low inventory equals higher prices that go up with the demand. In a buyer’s market, there is more inventory which results in lower asking prices. Because the South Lake Tahoe real estate market can change quickly, a lot of people want to price/buy based on old data. An experienced South Lake Tahoe Realtor will be able to suggest an asking price that both the seller and potential buyers will be pleased with because it will be based on the current comparable sales.
- Location, Location, Location
This is actually way more specific than it seems when it comes to selling homes for sale in South Lake Tahoe. You may see two similar homes just a couple blocks away from each other with different price points. Those few blocks can mean a world of difference in terms of surroundings. One could be on a meadow or have a quiet trail to the lake while another could back up to a business or front a busy road with high traffic. You also have to take into account what other structures are on the same street. If one house is surrounded by a lot of nice houses or a popular business or local amenity within walking distance, it will be deemed more desirable. If it is surrounded by tear downs, fixers or super old buildings, it may not hold the same value. Even the direction a home faces can have an impact so before you low ball on a home that deserves every penny of the ask price based on a lower priced, nearby property, talk with your South Lake Tahoe Realtor.
- The comps
We addressed comparable sales up above, but this really is a huge factor that qualified Realtors use to come up with an asking price. The data about the market conditions doesn’t lie, so use the resources of a professional who understands what the data means, what the current comparable solds are and listen to what they have to say.
- The amenities of the home
While a large, sprawling house used to be a buyer’s dream, they are looking for a LOT more than just a big house. Generally, buyers seek properties that are more current and new, have high end appliances, quality finishes and spacious bedrooms (on average, 3, depending on family size) all on an open floor plan that allows for versatility and function. The more desirable amenities a home has, the higher the price may be. Add in more features like ample parking, large fenced yard, bonus room and the higher the value goes.
- The condition of the home
While a home that is basically a tear down may hit the market with a really low price, a poorly maintained home that needs a little TLC may not. Sure the price should be competitive, but if it has good bones, the square footage is there, is in a great location and has some of the above discussed factors, the sellers may be in line with their asking price. The caveat to this is that if the price point is lower, it is likely because the new buyers will need to put money into their new investment. If you want new & turnkey with warranties in place, expect to pay more for South Lake Tahoe homes for sale.
Bottom line: Don’t automatically write off a home for being overprice for the market conditions. There are a lot of factors that go into coming up with the asking price. If you feel it may be too much, ask your South Lake Tahoe Realtor why it is on the market at that price point and they should be able to give you a qualified answer. For more information on South Lake Tahoe Real Estate, feel free to give us a call. We would be happy to help!